Rising Wedge on Valeant Pharma

My last idea described this as an ascending triangle , but I was batshit wrong. It's a rising wedge reversal pattern.

Key features:
  • A rising trend
  • Higher highs, higher lows. Looks inherently bullish
  • A contraction of volume
  • A decrease in momentum - the confidence in this rally is wavering

When we see that lower line break with high volume , it should move fast to the downside. I haven't put much work into where it'll fall if it does, but I think it'll be enough that a target of $26 will result in a profit.

There may be a rally following the reversal, which may be a good buying opportunity.
Comment: Looking for the price to close below ~29.693 to trigger the breakout to the downside. If it does so convincingly, it might bounce back up but I think gravity will take it down soon after.
Comment: It did it, and I'm seeing some bearish candlestick patterns, if you're into that. Evening star on the 4h chart, three black crows on the 1h.
Trade closed manually: Didn't drop quite as much as I expected, but it got darn close.
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isosphere mjgrier93
@mjgrier93, totally to brag. :)
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